CHINA: Relaxation of China foreign investment restrictions on QFIIs and RQFIIs

Thursday March 20 2014

The Shanghai Stock Exchange (SSE) has announced a number of relaxations to the China foreign investment restrictions on Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII).

Effective immediately, the amendments to the Implementing Rules of the Shanghai Stock Exchange on securities trading of RQFIIs and QFIIs provide that QFIIs and RQFIIs may now invest up to 30% in a single company, an increase from the previous 20%. Both RQFII and QFII may now also invest in asset-backed securities, when-issued debt and bonds issued by Chinese policy banks, and may also participate in the preferred share programme, anticipated later this year.

Click on the above link for the revised rules (in Chinese).